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In Sunday's Weekly Report we looked at some charts that showed the Occasional Letter proprietary indicator in an experimental role on the hourly Dow. As this weeks targets have now been hit I thought it would be appropriate to update the charts to show you the outcome.
The chart above was used in the Weekly Report where I hinted at an easily found move was ahead for the Dow. Subscribers saw a different version of the chart that included the targeted support and resistance:
It's the same chart just zoomed out to show the larger trend. As you can see by the 2 green arrows, I was looking for a move up from the proprietary indicator support, targeting the next level higher as resistance. I'll show you how it played out and zoom in on the present action:
As I (and many others) thought, we spiked at the open and went up to test minor resistance at 12340. Tuesday saw a recovery day and a spike at the upper targets of the minor resistance and the next level higher of the proprietary indicator. As is mostly the case, resistance did what it was meant to and the Dow retraced to the red MA support. As of writing on Wednesday the Dow has dropped back to the Prop'y indicator support accompanied by long lower wicks on the candles. Todays close will be important for future direction.
In the spirit of sharing and as its higher target has been hit here is the daily Dow version of the indicator. First up is the chart subscribers saw on Sunday at An Occasional Letter From The Collection Agency:
Again, I was looking for a retrace to the minor resistance after a bounce from minor support at 12217 that was set back in March. The lower target was at 12030.
Here is the updated daily Dow:
I have added the minor support at 12099 set in mid March. As you can see we hit the upper target and we still have a "live" lower target. I hope you have enjoyed this little exercise and update. They may become more frequent (but, alas only after subscribers have had their fill).
Will that lower target get hit? I'm sure you can work out what needs to happen to allow that.
